Yu Xin: If the Iran war ends, the US dollar may drop further.

Roberto Mialich of Yuxin stated in a report that if the Iran war ends or becomes a risk factor for the Trump administration, the US dollar will face further decline. He said that if risk aversion eases, the USD's safe-haven status would mean it could lose its strong position, much like what was seen after Trump announced a two-week ceasefire. "Once the conflict is clearly over, the market is expected to refocus on the factors that were putting pressure on the dollar before the outbreak of war." If the US becomes involved in a prolonged conflict without a clear exit strategy, the dollar could also weaken. He said this could trigger concerns about US economic policy and the dollar's new reputation. The DXY dollar index fell 1% to 98.855.